Crane Company had $290,600 of net income in 2019 when the selling price per unit was $154, the variable costs per unit were $94, and the fixed costs were $573,400. Management expects per unit data and total fixed costs to remain the same in 2020. The president of Crane Company is under pressure from stockholders to increase net income by $57,600 in 2020.

A. Compute the number of units sold in 2019

B. Compute the number of units that would have to be sold in 2020 to reach the stockholders' desired profit level.

C. Assume that Crane Company sells the same number of units in 2020 as it did in 2019. What would the selling price have to be in order to reach the stockholders' desired profit level?

Meyer reported the following pretax financial income (loss) for the years 2020–2022. 2020 $120,000 2021 (150,000) 2022 180,000 Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate was 20% for 2020–2022. Instructions a. Prepare the journal entries for the years 2020–2022 to record income tax expense, income taxes payable, and the tax effects of the loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-fifth of the benefits of the loss carryforward will not be realized.

I am not sure what the correct solution is on your website.

Do we need an allowance journal entry for the years 2021 and 2022 to record the NOL Carryforward benefit?

a. Record income tax expense, deferred income taxes, and income taxes payable for 2020, assuming that it is more likely than not that the deferred tax asset will be realized.

b. Assuming that it is more likely than not that $15,000 of the deferred tax asset will not be realized, prepare the journal entry at the end of 2020 to record the valuation account.

Question # 6 Erica Corp., who reports under ASPE, leases machinery on January 1, 2020, and records this as a capital lease. Seven annual lease payments of $ 140,000 are required the end of each year, starting December 31, 2020. The present value of the lease payments are calculated using 10%. Title passes to Erica at the end of the lease. Erica uses the effective interest method of amortization for the lease. The company uses straight-line depreciation. The equipment’s expected useful life of eight years, with no residual value. Instructions (Round values to the nearest dollar.) a. What type of lease is this for the lessee? What is your rationale? a. Prepare a lease amortization table for 2020 and 2021. b. Prepare the general journal entries relating to this lease for 2020.

Erica Corp., who reports under ASPE, leases machinery on January 1, 2020, and records this as a capital lease. Seven annual lease payments of $ 140,000 are required the end of each year, starting December 31, 2020. The present value of the lease payments are calculated using 10%. Title passes to Erica at the end of the lease.

Erica uses the effective interest method of amortization for the lease. The company uses straight-line depreciation. The equipment’s expected useful life of eight years, with no residual value.

Instructions (Round values to the nearest dollar.)

1. What type of lease is this for the lessee?  What is your rationale?

1. Prepare a lease amortization table for 2020 and 2021.
2. Prepare the general journal entries relating to this lease for 2020.

The DeVille Company reported pretax accounting income on its income statement as follows:
   

   
Included in the income of 2018 was an installment sale of property in the amount of $66,000. However, for tax purposes, DeVille reported the income in the year cash was collected. Cash collected on the installment sale was $26,400 in 2019, $33,000 in 2020, and $6,600 in 2021.

Included in the 2020 income was $28,000 interest from investments in municipal bonds.

The enacted tax rate for 2018 and 2019 was 30%, but during 2019 new tax legislation was passed reducing the tax rate to 25% for the years 2020 and beyond.

Required:
Prepare the year-end journal entries to record income taxes for the years 2018–2021.

The DeVille Company reported pretax accounting income on its income statement as follows:
   

   
Included in the income of 2018 was an installment sale of property in the amount of $32,000. However, for tax purposes, DeVille reported the income in the year cash was collected. Cash collected on the installment sale was $12,800 in 2019, $16,000 in 2020, and $3,200 in 2021.

Included in the 2020 income was $11,000 interest from investments in municipal bonds.

The enacted tax rate for 2018 and 2019 was 30%, but during 2019 new tax legislation was passed reducing the tax rate to 25% for the years 2020 and beyond.

Required:
Prepare the year-end journal entries to record income taxes for the years 2018–2021.

The DeVille Company reported pretax accounting income on its income statement as follows:
   

   
Included in the income of 2018 was an installment sale of property in the amount of $44,000. However, for tax purposes, DeVille reported the income in the year cash was collected. Cash collected on the installment sale was $17,600 in 2019, $22,000 in 2020, and $4,400 in 2021.

Included in the 2020 income was $18,000 interest from investments in municipal bonds.

The enacted tax rate for 2018 and 2019 was 30%, but during 2019 new tax legislation was passed reducing the tax rate to 25% for the years 2020 and beyond.

Required:
Prepare the year-end journal entries to record income taxes for the years 2018–2021.

Pina Company provides the following information about its defined benefit pension plan for the year 2020.

Prepare the journal entry recording pension expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Ivanhoe Company had $177,900 of net income in 2019 when the selling price per unit was $154, the variable costs per unit were $98, and the fixed costs were $572,500. Management expects per unit data and total fixed costs to remain the same in 2020. The president of Ivanhoe Company is under pressure from stockholders to increase net income by $93,800 in 2020.

Compute the number of units sold in 2019.

Compute the number of units that would have to be sold in 2020 to reach the stockholders’ desired profit level.

Assume that Ivanhoe Company sells the same number of units in 2020 as it did in 2019. What would the selling price have to be in order to reach the stockholders’ desired profit level?